ERICSSON (LM) TEL-SP ADR (ERIC) Stock Fundamental Analysis

NASDAQ:ERIC • US2948216088

11.28 USD
+0.03 (+0.27%)
Last: Feb 20, 2026, 10:01 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to ERIC. ERIC was compared to 48 industry peers in the Communications Equipment industry. While ERIC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ERIC is cheap, but on the other hand it scores bad on growth. ERIC also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • ERIC had positive earnings in the past year.
  • ERIC had a positive operating cash flow in the past year.
  • Of the past 5 years ERIC 4 years were profitable.
  • In the past 5 years ERIC always reported a positive cash flow from operatings.
ERIC Yearly Net Income VS EBIT VS OCF VS FCFERIC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20B -20B 40B

1.2 Ratios

  • ERIC's Return On Assets of 10.18% is amongst the best of the industry. ERIC outperforms 85.42% of its industry peers.
  • The Return On Equity of ERIC (25.95%) is better than 87.50% of its industry peers.
  • ERIC has a better Return On Invested Capital (15.64%) than 89.58% of its industry peers.
Industry RankSector Rank
ROA 10.18%
ROE 25.95%
ROIC 15.64%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ERIC Yearly ROA, ROE, ROICERIC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 -20 -30

1.3 Margins

  • ERIC has a Profit Margin of 12.01%. This is amongst the best in the industry. ERIC outperforms 83.33% of its industry peers.
  • In the last couple of years the Profit Margin of ERIC has grown nicely.
  • With an excellent Operating Margin value of 14.08%, ERIC belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
  • ERIC's Operating Margin has improved in the last couple of years.
  • ERIC's Gross Margin of 48.14% is fine compared to the rest of the industry. ERIC outperforms 62.50% of its industry peers.
  • ERIC's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 14.08%
PM (TTM) 12.01%
GM 48.14%
OM growth 3Y7.92%
OM growth 5Y2.1%
PM growth 3Y20.32%
PM growth 5Y9.81%
GM growth 3Y4.83%
GM growth 5Y3.45%
ERIC Yearly Profit, Operating, Gross MarginsERIC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ERIC is creating value.
  • ERIC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
ERIC Yearly Shares OutstandingERIC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B
ERIC Yearly Total Debt VS Total AssetsERIC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 100B 200B 300B

2.2 Solvency

  • The Debt to FCF ratio of ERIC is 1.38, which is an excellent value as it means it would take ERIC, only 1.38 years of fcf income to pay off all of its debts.
  • ERIC's Debt to FCF ratio of 1.38 is fine compared to the rest of the industry. ERIC outperforms 70.83% of its industry peers.
  • A Debt/Equity ratio of 0.32 indicates that ERIC is not too dependend on debt financing.
  • ERIC has a worse Debt to Equity ratio (0.32) than 68.75% of its industry peers.
  • Although ERIC does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.38
Altman-Z N/A
ROIC/WACC1.82
WACC8.59%
ERIC Yearly LT Debt VS Equity VS FCFERIC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

2.3 Liquidity

  • ERIC has a Current Ratio of 1.29. This is a normal value and indicates that ERIC is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Current ratio value of 1.29, ERIC is not doing good in the industry: 81.25% of the companies in the same industry are doing better.
  • A Quick Ratio of 1.08 indicates that ERIC should not have too much problems paying its short term obligations.
  • ERIC has a Quick ratio of 1.08. This is in the lower half of the industry: ERIC underperforms 75.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.29
Quick Ratio 1.08
ERIC Yearly Current Assets VS Current LiabilitesERIC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. Growth

3.1 Past

  • ERIC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 440.40%, which is quite impressive.
  • ERIC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.62% yearly.
  • The Revenue has decreased by -4.52% in the past year.
  • ERIC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.37% yearly.
EPS 1Y (TTM)440.4%
EPS 3Y13.71%
EPS 5Y9.62%
EPS Q2Q%36.79%
Revenue 1Y (TTM)-4.52%
Revenue growth 3Y-4.48%
Revenue growth 5Y0.37%
Sales Q2Q%-4.98%

3.2 Future

  • Based on estimates for the next years, ERIC will show a decrease in Earnings Per Share. The EPS will decrease by -8.53% on average per year.
  • ERIC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.10% yearly.
EPS Next Y-27.33%
EPS Next 2Y-12.81%
EPS Next 3Y-11.16%
EPS Next 5Y-8.53%
Revenue Next Year-0.39%
Revenue Next 2Y0.82%
Revenue Next 3Y0.13%
Revenue Next 5Y0.1%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ERIC Yearly Revenue VS EstimatesERIC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 50B 100B 150B 200B 250B
ERIC Yearly EPS VS EstimatesERIC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 2 -2 4 6 8

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7

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 11.17 indicates a reasonable valuation of ERIC.
  • Compared to the rest of the industry, the Price/Earnings ratio of ERIC indicates a rather cheap valuation: ERIC is cheaper than 93.75% of the companies listed in the same industry.
  • ERIC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.09.
  • ERIC is valuated correctly with a Price/Forward Earnings ratio of 15.30.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ERIC indicates a rather cheap valuation: ERIC is cheaper than 81.25% of the companies listed in the same industry.
  • ERIC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.98.
Industry RankSector Rank
PE 11.17
Fwd PE 15.3
ERIC Price Earnings VS Forward Price EarningsERIC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 89.58% of the companies in the same industry are more expensive than ERIC, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, ERIC is valued cheaper than 91.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.72
EV/EBITDA 7.33
ERIC Per share dataERIC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

  • The excellent profitability rating of ERIC may justify a higher PE ratio.
  • A cheap valuation may be justified as ERIC's earnings are expected to decrease with -11.16% in the coming years.
PEG (NY)N/A
PEG (5Y)1.16
EPS Next 2Y-12.81%
EPS Next 3Y-11.16%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. Dividend

5.1 Amount

  • ERIC has a Yearly Dividend Yield of 3.09%.
  • Compared to an average industry Dividend Yield of 0.77, ERIC pays a better dividend. On top of this ERIC pays more dividend than 89.58% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.85, ERIC pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.09%

5.2 History

  • On average, the dividend of ERIC grows each year by 22.02%, which is quite nice.
  • ERIC has paid a dividend for at least 10 years, which is a reliable track record.
  • As ERIC did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)22.02%
Div Incr Years5
Div Non Decr Years5
ERIC Yearly Dividends per shareERIC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3 0.4

5.3 Sustainability

  • 33.58% of the earnings are spent on dividend by ERIC. This is a low number and sustainable payout ratio.
DP33.58%
EPS Next 2Y-12.81%
EPS Next 3Y-11.16%
ERIC Yearly Income VS Free CF VS DividendERIC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20B -20B 40B
ERIC Dividend Payout.ERIC Dividend Payout, showing the Payout Ratio.ERIC Dividend Payout.PayoutRetained Earnings

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ERICSSON (LM) TEL-SP ADR

NASDAQ:ERIC (2/20/2026, 10:01:02 AM)

11.28

+0.03 (+0.27%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)01-23
Earnings (Next)04-17
Inst Owners56.85%
Inst Owner Change0.92%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap37.60B
Revenue(TTM)236.68B
Net Income(TTM)28.43B
Analysts56.55
Price Target10.23 (-9.31%)
Short Float %1.88%
Short Ratio5.93
Dividend
Industry RankSector Rank
Dividend Yield 3.09%
Yearly Dividend0.3
Dividend Growth(5Y)22.02%
DP33.58%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)53.68%
Min EPS beat(2)29.76%
Max EPS beat(2)77.6%
EPS beat(4)4
Avg EPS beat(4)44.45%
Min EPS beat(4)20.62%
Max EPS beat(4)77.6%
EPS beat(8)6
Avg EPS beat(8)-30.16%
EPS beat(12)10
Avg EPS beat(12)-8.61%
EPS beat(16)10
Avg EPS beat(16)-9.98%
Revenue beat(2)1
Avg Revenue beat(2)1.05%
Min Revenue beat(2)-0.88%
Max Revenue beat(2)2.98%
Revenue beat(4)1
Avg Revenue beat(4)-1.6%
Min Revenue beat(4)-6.39%
Max Revenue beat(4)2.98%
Revenue beat(8)2
Avg Revenue beat(8)-1.04%
Revenue beat(12)3
Avg Revenue beat(12)-1.34%
Revenue beat(16)7
Avg Revenue beat(16)-0.7%
PT rev (1m)9.21%
PT rev (3m)12.12%
EPS NQ rev (1m)4.48%
EPS NQ rev (3m)2.29%
EPS NY rev (1m)0.73%
EPS NY rev (3m)1.3%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.38%
Valuation
Industry RankSector Rank
PE 11.17
Fwd PE 15.3
P/S 1.45
P/FCF 11.72
P/OCF 10.38
P/B 3.12
P/tB 6.43
EV/EBITDA 7.33
EPS(TTM)1.01
EY8.95%
EPS(NY)0.74
Fwd EY6.54%
FCF(TTM)0.96
FCFY8.53%
OCF(TTM)1.09
OCFY9.63%
SpS7.81
BVpS3.61
TBVpS1.75
PEG (NY)N/A
PEG (5Y)1.16
Graham Number9.06
Profitability
Industry RankSector Rank
ROA 10.18%
ROE 25.95%
ROCE 19.8%
ROIC 15.64%
ROICexc 23.58%
ROICexgc 47.63%
OM 14.08%
PM (TTM) 12.01%
GM 48.14%
FCFM 12.33%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y7.92%
OM growth 5Y2.1%
PM growth 3Y20.32%
PM growth 5Y9.81%
GM growth 3Y4.83%
GM growth 5Y3.45%
F-Score7
Asset Turnover0.85
Health
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.38
Debt/EBITDA 0.82
Cap/Depr 40.77%
Cap/Sales 1.59%
Interest Coverage 15.11
Cash Conversion 77.43%
Profit Quality 102.67%
Current Ratio 1.29
Quick Ratio 1.08
Altman-Z N/A
F-Score7
WACC8.59%
ROIC/WACC1.82
Cap/Depr(3y)40.93%
Cap/Depr(5y)47.07%
Cap/Sales(3y)1.71%
Cap/Sales(5y)1.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)440.4%
EPS 3Y13.71%
EPS 5Y9.62%
EPS Q2Q%36.79%
EPS Next Y-27.33%
EPS Next 2Y-12.81%
EPS Next 3Y-11.16%
EPS Next 5Y-8.53%
Revenue 1Y (TTM)-4.52%
Revenue growth 3Y-4.48%
Revenue growth 5Y0.37%
Sales Q2Q%-4.98%
Revenue Next Year-0.39%
Revenue Next 2Y0.82%
Revenue Next 3Y0.13%
Revenue Next 5Y0.1%
EBIT growth 1Y45.04%
EBIT growth 3Y3.08%
EBIT growth 5Y2.47%
EBIT Next Year7.3%
EBIT Next 3Y6.82%
EBIT Next 5Y2.71%
FCF growth 1Y-31.52%
FCF growth 3Y5.77%
FCF growth 5Y4.32%
OCF growth 1Y-28.77%
OCF growth 3Y2.21%
OCF growth 5Y2.64%

ERICSSON (LM) TEL-SP ADR / ERIC FAQ

What is the fundamental rating for ERIC stock?

ChartMill assigns a fundamental rating of 6 / 10 to ERIC.


What is the valuation status of ERICSSON (LM) TEL-SP ADR (ERIC) stock?

ChartMill assigns a valuation rating of 7 / 10 to ERICSSON (LM) TEL-SP ADR (ERIC). This can be considered as Undervalued.


How profitable is ERICSSON (LM) TEL-SP ADR (ERIC) stock?

ERICSSON (LM) TEL-SP ADR (ERIC) has a profitability rating of 8 / 10.


What is the expected EPS growth for ERICSSON (LM) TEL-SP ADR (ERIC) stock?

The Earnings per Share (EPS) of ERICSSON (LM) TEL-SP ADR (ERIC) is expected to decline by -27.33% in the next year.


Can you provide the dividend sustainability for ERIC stock?

The dividend rating of ERICSSON (LM) TEL-SP ADR (ERIC) is 7 / 10 and the dividend payout ratio is 33.58%.